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2Q earnings from ConocoPhillips; Willow Ops Center on schedule
Kay Cashman Petroleum News
In connection with ConocoPhillips' quarterly 2025 earnings released on Aug. 7, ConocoPhillips Alaska reported a net income of $135 million in the second quarter.
During the quarter, ConocoPhillips Alaska incurred an estimated $311 million in taxes and royalties, which includes $261 million to the state of Alaska and $50 million to the federal government.
Year-to-date, ConocoPhillips Alaska has invested more than $2 billion in capital.
"The Willow Operations Center remains on schedule for year-end commissioning and permanent camp occupancy, and the Willow Construction Camp is operational, enabling year-round construction activities," said Erec Isaacson, president of ConocoPhillips Alaska. "This significant investment in the Willow project highlights our commitment to responsibly developing Alaska's North Slope resources, delivering new production, and making substantial contributions to the state's economy through job creation and revenue generation. In addition, the Nuna project in the Greater Kuparuk area, which commenced oil production in December 2024, has completed six of the 28 planned wells, which adds more barrels of oil to the Trans-Alaska Pipeline System (TAPS)."
"Legacy assets in the Greater Kuparuk Area and Western North Slope continue to provide value and support future opportunities, and ConocoPhillips remains committed to investing in the North Slope. Alaska's current fiscal policies are essential in fostering a stable environment for ongoing investments and generating continued revenue for the state."
Since 2007, ConocoPhillips Alaska has incurred more than $46 billion in taxes and royalties to the State of Alaska and the federal government. Of that amount, approximately $36 billion went directly to the state. In that same period, ConocoPhillips Alaska's earnings were approximately $28 billion.
Winter work As reported in the July 20 issue of Petroleum News and first reported by Bloomberg on July 14, the company is seeking authorization from the U.S. Bureau of Land Management, or BLM, to conduct exploration activities in the National Petroleum Reserve-Alaska, or NPR-A, during the winter season of 2025-26.
Any oil discovered will be processed through the company's Willow project, which is under construction and is already expected to produce some 600 million barrels over a period of 30 years, beginning in 2029 and peaking at around 180,000 barrels per day.
Following an exploration campaign, the company began pursuing the large Willow discovery at the Bear Tooth unit in 2018 and sanctioned the $7.5 billion project in late 2023.
ConocoPhillips Alaska operates two units in the petroleum reserve: Greater Mooses Tooth and Bear Tooth.
The Anchorage-based company has applied for a seismic program south of the Greater Mooses Tooth and the Bear Tooth units and a one-well exploration program in the Greater Mooses Tooth unit.
ConocoPhillips Alaska has also requested authorization for a three-well exploration program with one well in the Bear Tooth unit and two wells to the west.
The company has invested billions of dollars to acquire leases in the NPR-A, conduct exploration activities, and develop its leases under some of the most stringent environmental protections in the world.
The NPR-A is a petroleum reserve that was set aside by Congress for oil development.
--KAY CASHMAN
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